Nigerian businesses told to prepare for digital tax system
Businesses in Nigeria have been advised to upgrade their tax and accounting systems as the country shifts towards digital tax administration. The Nigeria Revenue Service is introducing an e-invoicing framework to improve transaction visibility and reduce tax fraud. Mohammed Bawa, Project Manager of the National E-Invoicing Project, emphasized the need for businesses to adapt to the changing digital landscape. Olumide Akinsola, Director of DigiTax Nigeria, highlighted that the new system will simplify tax processes and audits for companies.
TLDR
- The Nigeria Revenue Service is rolling out an e-invoicing system to modernize tax administration.
- Mohammed Bawa said the system will help bridge information gaps and reduce tax fraud.
- E-invoicing will be mandatory, starting with large taxpayers, then medium and smaller businesses.
- Olumide Akinsola noted the digital system will make audits and tax claims easier for companies.
- Invoices outside the approved framework may affect businesses' ability to claim VAT credits.
